Today's Tax Talk with Attorney Steven Leahy

Thursday May 18, 2023 - The Supreme Court released the much-anticipated decision in Polselli v. IRS. This case concerned a collection action of the IRS. So, I took a specific interest in this case. While the case was often touted as a 4th amendment privacy case - that's not how the court saw it. Rather, the court decided the case based on Statutory construction, not Constitutional Law. Chief Justice Roberts delivered the Opinion of the Court. The court held: "The question presented is whether the exception to the notice requirement in §7609(c)(2)(D)(i) applies only where a delinquent taxpayer has a legal interest in accounts or records summoned by the IRS under §7602(a). A straightforward reading of the statutory text supplies a ready answer: The notice exception does not contain such a limitation." In this case, [t]he parties did not argue, and the [court] below did not decide, the contours of [the phrase 'in aid of the collection.'" Justice Jackson wrote a concurring opinion (joined by Justice Gorsuch) in which she writes "Congress did not give the IRS a blank check, so to speak, to do with as it will in the collection arena." In her opinion, "the IRS is not necessarily exempt from notice obligations any time a tax-delinquency matter enters the collection phase." I only wish more Justices joined in her opinion. While the Court upheld the IRS's position in this instance, it did not define the full extent of the IRS's authority to issue summonses, implying that there could be future clarification on this matter. --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Crypto-Tuesday May 16, 2023 - Today, I summarize an article I found in Mondaq - "Learning from the Ups and Downs of Cryptocurrency" by Jose Saa. From what I can find, Mr. Saa is a Compliance Officer who works within the Bank Secrecy Act (BSA) & Anti-Money Laundering (AML) compliance program.. The article starts by mentioning how cryptocurrencies like Bitcoin and Ethereum have become popular and can change the way we do things, especially in finance and technology. However, Mr. Saa points out that these digital currencies can also be unpredictable, and their values can change quickly. One important lesson we can learn is the need to research and be careful before investing in cryptocurrencies. It's important to understand how they work, what affects their value, and the risks involved. Although there is a chance to make money, there's also a higher risk of losing it because of how fast the prices can go up and down. The article also talks about the importance of rules and regulations for cryptocurrencies. Since they are not controlled by banks or governments, there should be some guidelines to protect people from scams and fraud. Finding the right balance between innovation and rules is crucial for the success of cryptocurrencies in the long run. Another lesson is about keeping our digital money safe. Since cryptocurrencies exist only in computers, they can be targets for hackers and cybercriminals. Using strong passwords, secure storage methods, and other safety measures is important to protect our digital assets. Additionally, the article mentions the importance of learning and staying informed. Cryptocurrencies are complicated, so it's essential to keep learning about them and staying updated on the latest news and best practices. This knowledge can help us make smarter decisions and be aware of the risks involved. To sum it up, cryptocurrencies can be exciting, but they also come with risks. It's important to do research, follow rules, keep our digital money safe, and stay informed. By learning from the ups and downs of cryptocurrencies, we can make smarter choices and have a more secure and successful experience with digital money. My take - investing in cryptocurrencies carries the same burdens and responsibilities as investing in traditional assets. https://www.mondaq.com/unitedstates/fin-tech/1315228/learning-from-the-ups-and-downs-of-cryptocurrency https://chartwellcompliance.com/team/juan-saa/ --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Monday May 15, 2023 - The tax preparation industry finds itself in a state of skepticism as the Internal Revenue Service (IRS) explores the creation of a government-run tax preparation option. The news has sent shockwaves through the industry, resulting in a significant decline in the stock prices of major players such as TurboTax and H&R Block. Amidst the buzz, industry voices are raising doubts, emphasizing that a direct-to-IRS e-file system would be redundant and not as free as it seems. According to an article in The Wall Street Journal, the IRS is considering the implementation of a free tax preparation service directly through its platform. The aim is to simplify the tax filing process for millions of Americans while reducing their reliance on paid tax preparation services. However, skepticism arises regarding the feasibility and true cost of this proposed initiative. "A direct-to-IRS e-file system will be redundant, and it will not be free—not free to build, not free to operate, and not free for taxpayers," said Derrick Plummer, a spokesperson for Intuit, the owner of TurboTax. Plummer's statement reflects the industry's concerns that the IRS's plan may not be as cost-effective or efficient as it appears. Forbes reported on the significant impact this news has had on the stock prices of Intuit, the parent company of TurboTax, and H&R Block. Investors are expressing apprehension as the potential government-run option could potentially undermine the profitability of these private enterprises, which heavily rely on paid tax preparation services for revenue generation. The Washington Post highlights the existing IRS Free File program, a partnership between the IRS and private tax preparation companies that currently provides free tax preparation services to eligible individuals. Critics argue that the program is riddled with complexities and loopholes, often leading taxpayers to inadvertently use paid options or pay for additional services. Opponents of the IRS's proposed government-run tax preparation service argue that it would create redundancy in the market. They claim that the existing system, albeit imperfect, already provides viable options for taxpayers. The inclusion of a free, direct-to-IRS e-file system could be duplicative and unnecessarily costly. It is important to note that the IRS's consideration of a government-run tax preparation option is still in its preliminary stages, and a final decision has yet to be made. Congressional approval, legislative changes, and significant support will be required for such a proposal to come to fruition. As the story unfolds, the tax preparation industry, taxpayers, and lawmakers will closely scrutinize the IRS's actions and assess the potential consequences. The debate surrounding the viability and true cost of a government-run tax preparation service highlights the ongoing discussions regarding the accessibility and affordability of tax services for American taxpayers. While the IRS's initiative aims to simplify the tax filing process, concerns raised by industry insiders suggest that a more nuanced analysis is necessary. As the skepticism surrounding the proposed government-run option grows, stakeholders will continue to evaluate its potential impact on the market and the broader implications for taxpayers. https://www.wsj.com/articles/irs-weighs-creating-a-government-run-tax-prep-option-21647b65 https://www.washingtonpost.com/business/2023/05/15/irs-free-file/ https://www.forbes.com/sites/katherinehamilton/2023/05/15/irs-poised-to-weigh-in-on-free-tax-prep-service-sending-turbotax-and-hr-block-stocks-sliding/ --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Crypto-Tuesday May 2, 2023 - Today we explore the intersection of AI and blockchain and how these two technologies can work together to revolutionize various industries. We discuss how AI can improve the efficiency and accuracy of smart contracts, while blockchain can ensure transactions are secure and transparent. Additionally, we explore how AI and blockchain can be used in healthcare to improve medical record-keeping, in cybersecurity to create stronger and more resilient systems, and in renewable energy to create more efficient and sustainable energy systems. Attorney Steven A. Leahy also discusses the potential challenges and ethical concerns that must be considered when using these technologies. Join us as we delve deeper into the exciting possibilities of AI and blockchain and their potential impact on our world. https://www.rollingstone.com/culture-council/articles/ai-needs-blockchain-1234726883/ https://cointelegraph.com/innovation-circle/ai-meets-blockchain-revolutionizing-smart-contracts-and-cryptocurrency --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Thursday April 20, 2023 - Description: In this episode of Today's Tax Talk, we discuss Senator Joni Ernst's concerns about the IRS enforcement plan under President Joe Biden's Inflation Reduction Act and its potential impact on small businesses. We also explore the future of free filing options from the IRS and the possible development of a direct e-file program. Join our host, [Your Name], as they break down: 0:00 - Intro 0:30 - IRS Enforcement Plan Controversy 1:45 - Senator Joni Ernst's Concerns 3:00 - Potential Impact on Small Businesses 4:15 - Future of Free Filing Options from the IRS 5:30 - Feasibility Study for Direct E-File Program 6:45 - Sen. Elizabeth Warren's Push for a Direct E-File Program 8:00 - Outro Stay informed and make the most of your tax season with Today's Tax Talk! Don't forget to hit the subscribe button and the notification bell to get the latest updates on tax news and developments. Let us know your thoughts and questions in the comments below. #IRSTaxNews #TodaysTaxTalk #FreeFilingOptions #TaxSeason #TaxUpdates #SmallBusinessTax #IRSEnforcement #TaxControversy #InflationReductionAct #TaxFiling #TaxAdvice #TaxPreparation #TaxPolicy #TaxReform #DirectEFile #ElizabethWarren #JoniErnst #TaxTips #TaxTime #TaxNews https://www.cnbc.com/2023/04/20/there-are-lingering-questions-about-irs-free-tax-filing-options.html https://www.foxnews.com/politics/ernst-accuses-irs-witch-hunt-against-small-businesses-audit-proposal --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Wednesday April 19, 2023 - The Internal Revenue Service (IRS) has come under increased scrutiny in recent weeks, with Senator Ted Cruz calling for its abolishment and an IRS supervisory special agent seeking whistleblower protection to share information about alleged mishandling in the Hunter Biden investigation. On Tax Day 2023, Senator Cruz criticized the IRS for what he perceives as the weaponization of the tax code and called for the agency to be abolished. He cited recent incidents, such as an IRS agent knocking on journalist Matt Taibbi's door on the day he was scheduled to testify before Congress, as evidence of the agency's continued harassment and political manipulation. Despite these concerns, the Biden administration and Democrats have allocated $80 billion in new funding to the IRS, potentially allowing for the hiring of up to 87,000 new employees. In a separate development, an IRS supervisory special agent has sought whistleblower protection to share information with Congress about alleged mishandling and political interference in the ongoing criminal investigation into Hunter Biden. The agent claims to have information that contradicts prior sworn testimony before Congress from a high-ranking political appointee, as well as examples of preferential treatment and political bias in the handling of the case. Attorney Steven A. Leahy raises questions about the IRS's role, transparency, and fairness in society, and have led to calls for reform to ensure that the tax code is applied fairly to all Americans. https://www.cnn.com/2023/04/19/politics/irs-whistleblower-hunter-biden/index.html https://www.cruz.senate.gov/newsroom/press-releases/cruz-on-tax-day-stop-weaponization-of-tax-code-abolish-the-irs --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Tuesday April 18, 2023 - The Internal Revenue Service (IRS) has made headlines for its recent improvements in customer service during the 2023 tax filing season. Thjey tell us this is proof $80 billion funding boost from the Inflation Reduction Act was good government . However, there's more to the story than meets the eye. According to the U.S. Treasury, the IRS managed to provide live assistance to 87% of taxpayers' phone calls and answered 2.4 million more calls during the 2023 tax filing season. While this is an obvious improvement, the real reason behind it is not the Inflation Reduction Act. In fact, the IRS hired 5,000 new staff members to answer calls in June 2022 BEFORE the Act was passed, as part of the $1.5 trillion Omnibus spending bill from March 2022. Looking at the numbers, the new IRS employees managed to answer only 480 calls each. Assuming that these calls were spread over the 13-week tax season, each new employee handled just 37 calls per week. This raises questions about the efficiency of the investment and whether there are better ways to improve the IRS's customer service. Republicans in the House have already tried to claw back the $80 billion in new IRS spending and may do so again in exchange for raising the $31.4 trillion U.S. debt ceiling. The IRS's approach to solving its customer service issues by throwing huge amounts of taxpayer money at the problem is not the answer. Attorney Steven A. Leahy critiques IRS claims on Today's Tax Talk. https://www.reuters.com/world/us/us-irs-answered-24-million-more-taxpayer-calls-due-new-funding-2023-04-17/ https://federalnewsnetwork.com/budget/2022/03/congress-seeks-updates-on-state-of-the-federal-workforce-in-1-5t-omnibus-spending-deal/ --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Friday April 14, 2023 - Meet Attorney Michael Leonard. Attorney Leonard is a highly accomplished trial lawyer with over 30 years of experience in Federal and State criminal matters, civil employment, whistleblower, retaliation, qui tam, commercial, and injury cases. He has successfully tried numerous cases to verdict in Federal and State courts across the country, achieving rare feats such as six complete not guilty verdicts on all counts in Federal criminal cases. Attorney Leonard has also achieved impressive results in civil trials in Illinois State courts and Federal courts throughout the country. He has received recognition for his exceptional trial skills and legal expertise from various organizations. Apart from his trial and litigation practice, Mike advises and represents clients on employment-related matters, and he is an Adjunct Professor of Trial Practice at the Northwestern Pritzker School of Law. Attorney Steven A. Leahy interviews Attorney Michael Leonard on the Trust Radio Network. https://www.leonardtriallawyers.com/ --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Wednesday April 12, 2023 – Tax Day is April 18th this year. Don't let the change in the date get you. Yes, April 15th is usually Tax Day – but the rule is – and this rule goes for preforming most any act for tax purposes – if the deadline falls on a Saturday, Sunday or legal holiday it is considered timely if filed no later than the next day that is not a Saturday, Sunday or legal holiday. The term “legal holiday” means any legal holiday in the District of Columbia (and gets more complicated if the new due date falls on an official state holiday). April 15th falls on Saturday this year. And the next Monday April 17th is a legal holiday in DC (Emancipation Day). So, Tuesday April 18th is Tax Day. Some taxpayers living overseas and disaster victims may have later filing deadlines. Alabama, California and Georgia storm victims now have until May 15 to file various federal individual and business tax returns and make tax payments. If you won't be able to file your tax return by April 18th. Consider asking for an extension. An extension will set a new deadline of October 16 (October 15 is a Sunday). To get an extension you simply complete IRS Form 4868. Form 4868 is a single page form with basic information: your name, address and social security number. The form also asks you to estimate how much tax you will owe? BECAUSE your taxes are still due on April 18th! You don't get an extension to pay your taxes, just to file the return. VERY IMPORTANT. If you fail to pay by April 18th, you will receive a failure to pay penalty. The Failure to Pay Penalty is 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid. The penalty won't exceed 25% of your unpaid taxes. Here is something most don't know. Taxpayers can use the Free File program to file an extension electronically – no matter what your income is. EVERY taxpayer can use free file to file an extension. By filing an extension, you will avoid the failure to file penalty. That penalty is 5% of unpaid taxes for each month that a filing is late, with the penalty capped at 25% of unpaid taxes. Oh, and most states don't require you to file separate state extension forms if you don't owe any additional taxes. When you file your state return, you only need to attach a copy of your federal extension form. If you owe state tax, you typically must file state tax extension to avoid penalties. Attorney Steven A. Leahy explains filing extensions on Today's Tax Talk. https://www.cbsnews.com/news/taxes-2023-tax-extension-deadline-how-to/ https://www.irs.gov/newsroom/irs-kicks-off-2023-tax-filing-season-with-returns-due-april-18 https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Crypto-Tuesday April 11, 2023 - Bitcoin, the world's largest cryptocurrency by market capitalization, has broken through the $30,000 threshold for the first time since May 2021, marking a significant milestone in its volatile price history. The digital currency has been on a rollercoaster ride in recent years, experiencing extreme fluctuations in value, but this latest surge is a positive sign for investors who have held onto their bitcoin through the ups and downs. The price surge can be attributed to several factors, including increased institutional adoption of bitcoin, growing interest from retail investors, and a renewed focus on the potential use cases of cryptocurrencies. Some experts also point to the current economic climate, which has seen governments around the world pumping trillions of dollars into their economies to counter the effects of the COVID-19 pandemic, as a key driver of the bitcoin price surge. Speculation is rampent. Will Bitcoin continue the surge. Some speculate to $1 Million. Or, will it crash and burn to zero. Only time will tell. Attorney Steven A. Leahy looks at the latest Bitcoin news on Today's Tax Talk. https://coinflip.tech/markets https://www.reuters.com/technology/bitcoin-pushes-past-30000-investors-eye-end-rate-rises-2023-04-11/ https://www.coindesk.com/business/2023/04/11/bitcoin-breaks-above-30k-for-first-time-since-june-2022/ --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Thursday April 6, 2023 - The Internal Revenue Service released its Inflation Reduction Act Strategic Operating Plan today. The plan is more of a "Wish List" or fantasy in my view. All that was wrong with the IRS will now be made right. According to the IRS Plan: The Plan is structured to achieve five objectives, which will be accomplished through a series of initiatives and projects aligned to each. 1. Dramatically improve services to help taxpayers meet their obligations and receive the tax incentives for which they are eligible 2. Quickly resolve taxpayer issues when they arise 3. Focus expanded enforcement on taxpayers with complex tax filings and high-dollar noncompliance to address the tax gap 4. Deliver cutting-edge technology, data, and analytics to operate more effectively 5. Attract, retain, and empower a highly skilled, diverse workforce and develop a culture that is better equipped to deliver results for taxpayers The new Commissioner, Danny Werfel, calls it "a vision for the future of Federal tax administration." The purpose of the plan was to lay out how the IRS was going to spend the $80 Billion from the Inflation Reduction Act. But the plan doesn't include any numbers until page 131. And then only in a high level, general, and abstract way. Let's not forget the IRS scandals of the 2010's. Not only the targeting of conservative organizations, but the capricious waste of taxpayer money for lavish conferences that included 10s of thousands of dollars for video parodies of Star Trek and Gilligan's Island. Attorney Steven A. Leahy critiques the new IRS report on Today's Tax Talk. https://www.irs.gov/about-irs/irs-inflation-reduction-act-strategic-operating-plan https://thehill.com/homenews/ap/ap-business/irs-pledges-better-customer-service-no-new-agents-with-guns/ https://www.cnn.com/2013/06/06/politics/congress-irs-waste/index.html --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Wednesday April 5, 2023 - Danny Werfel was sworn in as the 50th Commissioner of the Internal Revenue Service on Tuesday April 4, 2023. While Commissioner Werfel was sitting through his Senate confirmation hearing, the Treasury Department missed its self-appointed deadline to present a plan to the American people on just how they planned to spend the nearly $80 Billion in new funding for the IRS provided by the Inflation Reduction Act. Remember the Inflation Reduction Act? The Act that was passed without a single Republican vote. Danny is not new to the IRS. He was appointed as the Acting Commissioner of the Internal Revenue Service (IRS) on May 22, 2013, by then-President Barack Obama. Right after the IRS was caught targeting conservative groups seeking tax-exempt status and the previous Commissioner, Steven Miller resigned under a cloud. Think Lois Learner. Commissioner Werfel has promised the IRS workforce they will receive the credit they deserve. The IRS workforce “has risen to the occasion and delivered for taxpayers with limited resources.” The additional $80 Billion will allow the IRS to treat every taxpayer fairly. Don't worry, everything you ever thought bad about the IRS, will be just great. This filing season has been better than the previous filing seasons. You know the filing seasons when the IRS employees stayed home and no one was there to process returns or answer the phone. Attorney Leahy welcomes IRS Commissioner Danny Werfel on Today's Tax Talk. https://www.govexec.com/management/2023/04/new-irs-chief-growing-workforce-will-transform-agency-armed-only-their-calculators/384806/ https://www.irs.gov/about-irs/commissioner-danny-werfel https://federalnewsnetwork.com/reorganization/2023/04/irs-commissioner-danny-werfel-outlines-plan-to-transform-agency-with-historic-investment/ --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Crypto-Tuesday April 4, 2023 - In December 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs Inc. (Ripple), the company behind the XRP cryptocurrency, claiming that XRP was an unregistered security. Ripple has denied the allegations and the case has been closely watched by the cryptocurrency industry. The outcome of the case could have far-reaching consequences for the regulation of cryptocurrencies in the United States and around the world. The SEC's complaint alleges that Ripple conducted an unregistered securities offering when it sold XRP to investors. According to the complaint, XRP was sold as an investment contract, and therefore, XRP is a security under U.S. law. The SEC is seeking to recover all profits obtained by Ripple and its founders as a result of the alleged sale of unregistered securities, as well as civil penalties. Ripple has vigorously denied the allegations, arguing that XRP is not a security and that the SEC's case is misguided. Ripple contends that XRP is a digital asset that serves as a medium of exchange and a store of value, and therefore, is not subject to the same regulations as securities. The case has generated a great deal of interest and concern. Many observers believe that the outcome of this case will have far-reaching consequences for the regulation of cryptocurrencies. If the SEC prevails, it will set a precedent for other cryptocurrencies to be classified as securities, which would subject them to stricter regulation and potentially stifle innovation within the industry. If Ripple prevails, the SEC's position that all cryptocurrencies, other than Bitcoin, are securities will suffer a major setback. Either way, a decision in this case will lead to greater regulatory clarity and certainty. The case has also raised questions about the SEC's approach to regulating cryptocurrencies. Some within the industry have criticized the SEC for its lack of clarity regarding the regulatory status of cryptocurrencies, arguing that the agency has been slow to provide guidance and has not kept pace with the rapid growth and evolution of the industry. Others have criticized the SEC for its perceived inconsistency in its approach to regulating cryptocurrencies, with some arguing that the agency has been overly aggressive in its enforcement actions against certain projects while ignoring others. Regardless of the outcome of the case, it is clear that the regulatory landscape for cryptocurrencies is still evolving and uncertain. While some countries have taken a more progressive approach to regulating cryptocurrencies, the United States has been slower to provide clear guidance and establish a regulatory framework for the industry. The Ripple vs. SEC case is just one example of the challenges and uncertainties that the cryptocurrency industry faces as it seeks to mature and gain wider acceptance. https://finbold.com/ripple-v-sec-court-case-update-as-of-april-3-2023/ https://forkast.news/headlines/sec-charges-beaxy-cryptocurrency-platform-for-violating-securities-laws/ https://bitcoinist.com/ripple-sec-xrp-foia-request-jp-morgan-delayed/ https://www.jdsupra.com/legalnews/cryptocurrency-companies-should-expect-2656781/ --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Thursday March 23, 2023 – On this show, I have spoken openly about the new 1099-k information reporting rules for Third party settlement organizations – I think they stink. Recently, the IRS updated their “frequently asked questions about Form 1099-K. We all remember the empty promises made by supporters of this expansion. “This really doesn't change anything, as these transactions are already taxable.” And “Only payments for goods and services will be effected.” Now we know, and the IRS has acknowledged, that almost all transactions involving third-party settlement organizations will come under scrutiny and require “Accounting” to explain close to every transaction. For example, The FAQ page provides guidance on how to report the sale of personal items on Form 1099-K, as well as how to report multiple Forms 1099-K and Forms 1099-K received in error. Taxpayers can report offsetting entries on Schedule 1 for each Form 1099-K they receive separately, or they can combine the Forms 1099-K they've received. The FAQ also address the question “During the year, I sold my personal guitar for $800 on a social media platform's marketplace and I received Form 1099-K. I purchased the guitar several years ago for $3,000. How do I prove how much I paid if requested by the IRS?” This is what I have been saying from the beginning, and why I thought the explanations given by the IRS, Congress, and their media mouthpieces were, shall we say, disingenuous. In 2021 the IRS processed 4.7 Billion (with a B) information returns. In 2020 the IRS destroyed 30 million without processing them, because they did not have the resources. With this HUGE increase, look for more delays. Although the delays generally come from paper returns, and the IRS is doing all they can to BAN paper returns. Attorney Steven A. Leahy looks over the new 1099-K FAQ sheet on Today's Tax Talk. https://www.accountingtoday.com/news/irs-issues-new-guidance-on-form-1099-k https://www.irs.gov/pub/taxpros/fs-2023-06.pdf --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Wednesday March 22, 2023 - The Inflation Reduction Act provided the IRS with a boat load of money. The Act also put aside $15 million for the IRS to conduct a study to find out how to create a program that allows Americans to file their taxes for free. As we all know. There is nothing more expensive than when the government gives something away. This free tax filing plan was the brain child of Senator Elizabeth Warren. She insisted this provision be included in the Act before she would support it. What most of the public does not know is - there is already a free file program at the IRS. If you make less than $73,000.00 you can file your 2022 federal tax returns for free. However, the Free File progrqam is not used by many taxpayers. According to the IRS, More than 100 million people, almost 70% of all taxpayers, qualify for Free File. Since the program launched the Free File program in 2003, according to the IRS, less than 2% of eligible Americans have taken advantage of it. Attorney Steven A. Leahy talks about the IRS Proposal to prepare tax returns for all Americans. https://thehill.com/business/3912232-conservative-coalition-takes-aim-at-bidens-irs-run-tax-preparation-service/ https://www.clickondetroit.com/news/national/2022/09/07/irs-gets-15m-to-find-out-if-it-can-create-online-tax-return-system-so-americans-can-file-for-free/ https://www.irs.gov/newsroom/irs-free-file-launch-aims-to-save-taxpayers-hard-earned-dollars https://www.cnet.com/personal-finance/taxes/irs-free-file-lets-most-americans-file-their-taxes-for-free/ --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Crypto-Tuesday March 21, 2023 - The Supreme Court is set to hear arguments in its first case involving cryptocurrencies. The case involves Coinbase, one of the leading crypto exchanges, attempting to compel arbitration for a pair of class action lawsuits against it. Abraham Bielski is suing Coinbase for $31,000 he lost after providing a scammer access to his account. Suski v. Coinbase concerns a million-dollar sweepstakes event hosted by Coinbase in 2021. In that case, plaintiffs allege they were misled. The outcome of the case could have major implications for how Crypto companies can resolve disputes. As more class action lawsuits are filed against crypto ledgers, the Supreme Court's decision in this case could have major ramifications. Ripple vs SEC is also an important case reaching the end of litigation. We have covered this case in this space. The question before the court is whether XRP is a security, as the SEC alleges. If it is, Ripple violated the registration provisions of the Securities Act of 1933 and many other cryptocurrencies are also securities and subject to SEC regulation. Attorney Steven A. Leahy reviews these cases on Today's Tax Talk. https://coinflip.tech/markets https://www.washingtonexaminer.com/policy/courts/supreme-court-takes-up-first-cryptocurrency-case https://www.irs.gov/newsroom/irs-issues-guidance-seeks-comments-on-nonfungible-tokens https://fortune.com/crypto/2023/03/21/ripple-xrp-sec-landmark-court-case-digital-assets/ --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Monday March 20, 2023 – The Biden Administration's proposed budget for 2023 is out. The budget proposes increasing spending from $5.8 Trillion to $6.7 Tillion. It's clear from the administration's proposals, they are not serious about engaging in any rational discussions on the budget and the debt ceiling. In addition, the budget drastically increasing the tax rate for those with incomes higher than $500,000 a year and a minimum tax for those with more than $100 million in wealth. The budget also increases corporate rates from 21% to 28%, as well as increase taxes on stock buybacks, investment income and certain federal agencies. But the BIGGEST surprise in the budget is the boost to the IRS budget. Remember, the Inflation Reduction Act has already provided the IRS with $80 billion for hiring 87,000 additional employees over the next decade, transforming it into one of the largest government agencies. This new budget would add an additional $43 BILLION. The baseline increases by 15% to $14.1 Billion PLUS another $29.1 billion in “mandatory funding for enforcement and operations.” I have to repeat Rep. Jason Smith's, chairman of the House Ways and Means Committee, question. “Is this a joke? Attorney Steven A. Leahy goes over the Biden Administration's new budget on Today's Tax Talk. https://elamerican.com/biden-wants-more-money-for-the-irs-43-billion-this-time/ https://waysandmeans.house.gov/never-enough-biden-budget-seeks-absurd-43-2-billion-for-irs-despite-receiving-unprecedented-80-billion-windfall-just-last-year/ --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Thursday March 16, 2023 - The Inflation Reduction Act was passed in August 2022. The Act provided $80 Billion over 10 years. The vast majority of those funds are directed to enforcement almost 60%. Only $3.2 billion – under 4% - is going to taxpayer services – like answering the phone. Today the Taxpayer Advocate, Erin Collins, wrote “The IRA allocated the funds in a manner that does not address the needs of U.S. taxpayers, including individuals, families, and businesses,” Collins continued, “The additional funding provided by the IRA, while appreciated and welcomed, is disproportionately allocated for enforcement activities and should be reallocated to achieve a better balance with taxpayer service needs and IT modernization. We need to put taxpayers first.” This space recently reported the IRS missed the 6 month deadline, imposed by Treasury Secretary Janet Yellen, to provide a plan on how the IRS intends to spend the IRA money. The IRS reported that it “expects to deliver the plan to the Secretary in [the] coming weeks.” That doesn't mean they aren't already spending Attorney Steven A. Leahy looks at the IRS' progress on this episode of Today's Tax Talk. https://www.pgpf.org/blog/2023/03/would-increased-funding-for-the-irs-narrow-the-tax-gap https://thehill.com/business/3903701-taxpayer-advocate-urges-congress-to-reconsider-80-billion-irs-funding-boost/ https://www.irs.gov/pub/image/21dbmainchart.png https://www.boropark24.com/news/irs-hires-5-000-customer-service-agents --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Crypto-Tuesday March 14, 2023 – Pi Day – Now that the Government has effectively guaranteed every deposit in every bank in America, Cryptocurrency prices have seen a sharp increase., Coinbase (COIN 5.88%) rose 11.9% on Tuesday and other cryptos such as Cardano, Ethereum and Bitcoin also saw double-digit gains. The Consumer Price Index report released Tuesday morning showed that inflation cooled down mildly in February. There are expectations that the banking crisis will also have an effect on the Fed's interest rate targets. This could prove a benefit for both the crypto market and digital currencies themselves. The recent surge has brought some digital tokens back to levels last seen at various points throughout 2021, while others have seen double-digit gains over the past two days. I think it is unrealistic to expect the economy to have a quick rebound. Did you notice the banks are failing?? That is never a sign of a strong economy. There is lots of bullish talk out there. Again, did you notice the banks are failing? Attorney Steven A. Leahy takes a look at the Crypto market on Today's Tax Talk. https://coinflip.tech/markets https://www.fool.com/investing/2023/03/14/why-bitcoin-ethereum-cardano-coinbase-are-soaring/ https://blocklr.com/cryptocurrency/state-of-cryptocurrency-today/ https://www.cnbc.com/amp/2023/03/14/moodys-cuts-outlook-on-us-banking-system-to-negative-citing-rapidly-deteriorating-operating-environment.html https://www.msn.com/en-us/money/companies/barney-franks-bank-tanks-government-is-just-the-word-for-the-businesses-we-shut-down-together/ar-AA18CNTz --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Monday March 13, 2023 – The Administration has been clear (??) the Inflation Reduction Act funding to the IRS, almost $80 billion, will not be used to Audit those making less than $400,000 per year. Or will it. Last week the new Commissioner of the IRS said, I think unequivocally, that the Inflation Reduction Act money will not be used to audit those taxpayers. But, on Friday March 10th, Treasury Secretary Yellen appeared before the House Ways and Means Committee and admitted that more than 90% of any new audits supported by that money will be used to audit small businesses and individuals making less than $400,000 per year. If you listened closely over these past months, you knew this was the case. There was always some “wiggle room,” as Senator Crapo put it. And trying to get a straight answer was always met with obfuscation. Now, I think the truth is out. Will it make a difference? Attorney Steven A. Leahy goes over this new information on Today's Tax Talk. https://www.cnn.com/2022/08/10/politics/yellen-new-irs-funding-audits/index.html https://finance.yahoo.com/video/yellen-appears-admit-90-irs-201955117.html --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Thursday March 9, 2023 – Did you hear about H.R. 25, the Fair Tax Act of 2023. This bill was introduced in House of Representatives in January 2023, right after the Republicans took over. Supporters claim the bill will simplify the current tax code and reduce federal spending. The act would replace the existing income, payroll, estate and gift taxes with a 23% national sales tax on consumable goods and services. The Family Consumption Allowance would ensure that low-income and middle-class families are not unfairly burdened by the sales tax. Additionally, it would reduce federal spending by over $71 billion in 2023 and eliminate the need for the Internal Revenue Service completely. Democratic Reps. Wiley Nickel of North Carolina, Eric Sorensen of Illinois and Brittany Pettersen of Colorado called the measure “extremist.” Yesterday Nickel said he “was dismayed to hear about an extremist plan by my colleagues on the other side of the aisle that calls for a 30% national sales tax for working families,” He continued “[a] 30% sales tax would be a disaster for working families and individuals in North Carolina and around the country who are already dealing with high gas prices, exorbitant housing costs and the rising costs of goods and everyday services.” Attorney Steven A. Leahy said “I find the proposal interesting and worth investigating. Anything is better than the current system. Isn't it?” Catch his analysis on Today's Tax Talk. https://www.law.cornell.edu/constitution/amendmentxvi https://www.congress.gov/bill/118th-congress/house-bill/25 https://www.forbes.com/sites/peterjreilly/2023/02/07/how-the-fair-tax-act-of-2023-might-work/?sh=2e4220e252ba https://www.cnbc.com/2023/03/08/taxes-house-democrats-push-back-on-gop-bill-to-abolish-irs-impose-national-sales-tax.html https://fairtax.org/active-legislation/h-r-25-the-fairtax-act-of-2023 --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Wednesday March 8, 2023 - Sen. Joe Manchin (D-WV) has announced that he will vote against, President Biden's choice for head of the Internal Revenue Service (IRS), Daniel Werfel. Manchin is dissatisfied with the way the Inflation Reduction Act (IRA) is being implemented. Although Manchin was the deciding vote on the IRA, he thinks Werfel would not be given autonomy to perform the job according to the law. “While Daniel Werfel is supremely qualified to serve as the IRS Commissioner, I have zero faith he will be given the autonomy to perform the job in accordance with the law and for that reason, I cannot support his nomination,” he said. “At every turn, this administration has ignored congressional intent when implementing the Inflation Reduction Act,” Daniel Werfel is still expected to have enough support to be named the new Commissioner of the Internal Revenue Service when the vote reaches the Senate floor, even without Manchin's vote, and two other absent Democrats, Senators Fetterman and Feinstein. Six Republicans voted to advance Werfel's nomination on a procedural vote. Manchin also said he would not vote for President Biden's nominee to sit on the Federal Communications Commission, Gigi Sohn. Manchin cited her "unprecedented" and "bipartisan opposition" due to her past activist statements and alliances with far-left groups. Shortly after his statement, Sohn withdrew herself from consideration, citing the toll that the attacks had taken on her and her family. So, look for Werfel to be the next Commissioner of the IRS, where he has vowed not to increase audits for households making under $400,000. We shall see. Attorney Steven A. Leahy reports on the latest IRS news on Today's Tax Talk. https://news.yahoo.com/manchin-oppose-bidens-nominee-head-175103115.html https://thehill.com/business/3889765-manchin-will-vote-against-bidens-pick-to-head-irs/ https://www.freep.com/story/money/personal-finance/susan-tompor/2023/03/08/irs-paper-tax-return-backlog-digital-scanning/69984755007/ --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Crypto-Tuesday March 7. 2023 - Cryptocurrency has emerged as a popular form of investment and a means of trade. The US government has been increasingly cracking down on the use of cryptocurrencies, with various agencies taking steps to curb their use. Today we will explore how US agencies are killing cryptocurrency in the US and the impact it may have on the future of digital currencies. One of the most significant moves against cryptocurrencies in the US was made by the Internal Revenue Service (IRS) in 2014. The IRS declared that cryptocurrencies should be treated as property for tax purposes, which meant that any gains from the sale of cryptocurrencies would be subject to capital gains tax. This was a major blow to cryptocurrency investors, who had previously enjoyed tax-free gains from their investments. The decision by the IRS to tax cryptocurrencies has made it more difficult and costly for individuals to trade in digital currencies. The Securities and Exchange Commission (SEC), under Chairman Gensler, has taken legal action against cryptocurrency companies. Going so far as to say that “everything but Bitcoin” should be considered a security and regulated as such. The ongoing legal battle between the SEC and Ripple may decide the fate of the entire crypto industry and whether many cryptocurrencies survive. Ripple CEO Brad Garlinghouse has said Crypto companies have "already started moving outside" the US to avoid the heavy hand of the SEC. More recently, the US Treasury Secretary, Janet Yellen, said it was “critical to put in place a strong regulatory framework.“ While she stopped short of calling for a ban on Cryptocurrencies, there have been very powerful forces stating that banning crypto should be an option. And today, Federal Reserve Chairman Jerome Powell, restated his heavy warnings to banks that the Federal Reserve are watching their Cryptocurrency moves closely. Saying, “We see in crypto activity lots of things that suggest that regulated financial institutions should be quite cautious in doing things in the crypto space." Some experts believe that cryptocurrencies will continue to thrive despite the increased scrutiny, while others believe that they will struggle to gain widespread adoption if they are subject to onerous regulations. In any case, the US government's increased scrutiny of cryptocurrencies has had a significant impact on the industry. The tax treatment of cryptocurrencies, along with proposed regulations from a host of United States Government Regulatory Agencies, including, the IRS, the SEC, the Department of Treasury, the Federal Reserve Board, and others, have made it more difficult and costly for individuals to trade in digital currencies. While some argue that this regulatory crackdown is necessary to prevent illicit activities, others worry that it will stifle innovation and prevent the growth of this possibly freedom enhancing technology. Attorney Steven A. Leahy looks at the regulatory landscape in this Crypto-Tuesday episode of Today's Tax Talk. https://coinflip.tech/markets https://cointelegraph.com/news/u-s-treasury-janet-yellen-calls-for-strong-regulatory-framework-for-crypto-activities https://www.coindesk.com/policy/2023/03/07/federal-reserves-powell-we-dont-want-to-strangle-crypto-innovation-but-sector-is-a-mess/ https://www.thestreet.com/crypto/news/ripple-ceo-crypto-will-go-overseas-due-to-sec-regulations https://www.nasdaq.com/articles/secs-gensler-warns-crypto-investors-but-differentiates-bitcoin --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Monday March 6, 2023 - The Sixteenth Amendment to the Constitution provides Congress with the “power to lay and collect taxes on incomes, from whatever source derived.” Gambling can be a fun and exciting activity. Remember, the Internal Revenue Service (IRS) recognizes winnings from casinos, lotteries, horse racing, sports betting and other gambling activities as income and subject to taxes. Gambling losses may be deductible on your federal tax return, but only up to the amount of winnings. To claim any deductions for your gambling losses, though, it's important to keep contemporaneous records of all your gambling activity throughout the year. Whether it's a casino or sportsbook ticket stub, an online receipt or bank statement with the transaction listed, having documentation of your losses is essential. Depending on where you live, additional state taxes may also apply to your gambling winnings. Some states require that you pay taxes on all your gaming revenue (not just the amount over a certain threshold), while others might not have any rules in place at all. In Illinois, where I live, the State taxes all winnings, and does not allow deductions for losses. I have had at least one client with larges winnings – hundreds of thousands of dollars. But larger losses. The State of Illinois taxed the full amount of winnings. In this case, that meant a very large State Tax bill. Professional gamblers (not an easy designation) may be subject to additional tax requirements. Professional gamblers are considered self-employed and must pay self-employment taxes on their winnings. They may also be required to pay estimated taxes throughout the year. So, if you don't keep good records and you get audited, it's a gamble. Good Luck. Attorney Steven A. Leahy discusses IRS taxes on Gambling on Today's Tax Talk. https://www.law.cornell.edu/constitution/amendmentxvi https://www.capjournal.com/arena/finance/las-vegas-casinos-gamblers-may-get-a-surprise-irs-jackpot/article_4a468745-4db3-512a-b5d3-04568f0b8c04.html https://ktla.com/news/nexstar-media-wire/as-march-madness-looms-so-do-sports-betting-taxes/ https://www.irs.gov/taxtopics/tc419 --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Thursday March 2, 2023 – As a tax attorney, I am always interested in the unusual. Like the tax implications of catching a record-setting baseball. Or finding a shipwreck with $800 million worth of whiskey. In 2010, a man named Ross Richardson discovered a the wreak of a passenger ship named the Westmoreland which sank in northern Lake Michigan in 1854. Along with gold valued at about $20 million, the ship contained about 280 barrels of whiskey each contain 200 bottles. The IRS refers to these items as “Treasure Troves.” A treasure trove is typically defined as a hidden or concealed collection of valuable items that has been discovered by chance. These items are usually old or antique and have been hidden away for a significant amount of time. In some cases, treasure troves may be discovered on a property or in a building that the finder does not own. In other cases, the finder may have been actively searching for treasure using metal detectors or other means. From a tax perspective, the discovery of a treasure trove can have several different implications. If the finder is not the legal owner of the property where the treasure trove was discovered, they may be required to pay a finder's fee or royalty to the property owner. This fee may be subject to income tax, depending on the specific circumstances of the discovery. If the finder is the legal owner of the property where the treasure trove was discovered, the tax implications may be different. In general, treasure troves are considered taxable income under the Internal Revenue Code. This means that the finder may be required to pay income tax on the value of the treasure trove. The specific tax rate will depend on the finder's income bracket and the value of the treasure trove. It is important to note that if the finder intends to sell the treasure trove, they will also be required to pay capital gains tax on any profits made from the sale. As a tax attorney, my advice to anyone who discovers a treasure trove is to consult with a tax professional as soon as possible. Do NOT follow the old adage “Shoot, Shovel, and Shut Up.” Attorney Steven A. Leahy explores the depths of the Treasure Trove Tax on Today's Tax Talk. https://nowthisnews.com/news/whiskey-recovered-from-a-170-year-old-shipwreck-could-be-worth-a-fortune https://www.forbes.com/sites/robertwood/2023/03/01/shipwrecked-whiskey-worth-871-million-irs-tax/?sh=4ecae39f2f0c --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Wednesday March 1, 2023 – Back in January we did a story about The Supreme Court refusing to hear a case of excessive fines for inadvertently failing to file a timely bank disclosure form called the FBAR (Report of Foreign Bank and Financial Accounts). Justice Gorsuch issued a rare dissenting opinion in that case. And now it makes sense. On Tuesday, the United States Supreme Court limited the IRS's ability to impose penalties when taxpayers unintentionally make errors in reporting foreign accounts. The majority opinion was written by Justice Neil M. Gorsuch. He reasoned that the relevant legal duty is to file reports, not individual accounts. The case concerned Alexandru Bittner, an immigrant and dual citizen who failed to disclose his foreign accounts while living overseas. Lawyers argued that the FBAR should only carry a fine of $50,000, or $10,000 per year. Not the nearly $3 million penalty initially imposed by the IRS, based on the number of accounts. Justice Amy Coney Barrett disagreed and wrote a dissent arguing that the FBAR is an annual form requiring separate penalties for each account not reported. The ruling is important news for taxpayers who worry about FBAR penalties and adds clarity to the IRS's authority when it comes to FBAR violations. With this ruling, SCOTUS has ensured that taxpayers will not be unfairly penalized by the IRS for unintentional FBAR mistakes. That's a win for everyone. Thank you SCOTUS! God bless America! Now, how can we go back to the Toch case and correct that wrong? Attorney Steven A. Leahy analyses this recent Supreme Court decision on Today's Tax Talk. https://www.washingtontimes.com/news/2023/feb/28/supreme-court-sides-immigrant-challenging-irs-pena/ https://www.supremecourt.gov/opinions/22pdf/21-1195_h3ci.pdf https://vimeo.com/manage/videos/793168156 https://www.supremecourt.gov/opinions/22pdf/22-177_d0fi.pdf --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Crypto-Tuesday February 28, 2023 - Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), has come out with a statement that all digital assets, besides bitcoin, are securities. But according to various lawyers, his opinion cannot be taken as law without the SEC having to prove its case in court for each individual token, a process which would be incredibly timely and expensive. Gabriel Shapiro from the Delphi Labs outlined that it would take 12,305 lawsuits for this to happen, making it unfeasible for most token creators. He also noted that registration is not feasible as there is no clear path for it. Overall, this statement has sparked fear in the industry as to what the SEC's plan for crypto. That said, it is important to note that Gensler's opinion should not be taken as the final legal determination – although powerful. Ultimately, judicial decisions determine what the law means and how it applies. In conclusion, Gensler's comments are something to be feared, as his opinion could have a dramatic impact on how things are regulated. Remember, Gensler has been asked to recuse himself in crypto enforcement cases because of his clearly bias statements. Attorney Steven A. Leahy reviews the current SEC vs Crypto standings on Today's Tax Talk. https://coinflip.tech/markets https://cointelegraph.com/news/crypto-lawyers-flame-gensler-over-claims-that-all-crypto-are-securities https://cryptoslate.com/ripple-asks-sec-chair-to-recuse-self-from-crypto-enforcement-cases/ --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Monday February 27, 2023 – Remember that February 17, 2023 deadline Treasury Secretary Janet Yellen set for The Internal Revenue Service (IRS) to create a strategic plan for spending the $80 billion Congress handed them? Yeah, neither does the IRS. The February deadline came and went and the IRS simply did not meet the deadline. The IRS has excuses: former Commissioner Charles Rettig's term expired, there is a confirmation process for the subsequent nominee Daniel Werfel, and a friend came in from out of town. Treasury has been working with the IRS to develop a plan since last summer. This delay raises questions about the agency's credibility and casts doubt on its ability to efficiently spend the money. While the document is still in progress, taxpayers should expect revisions as needs change. But don't worry. The IRS will complete it in good time- now get back to doing your return. There is a deadline you know! Attorney Steven A. Leahy looks at the latest IRS arrogance on Today's Tax Talk. https://www.washingtonexaminer.com/restoring-america/faith-freedom-self-reliance/negligent-irs-gets-80-billion-but-misses-deadline-for-the-money https://www.forbes.com/sites/howardgleckman/2023/02/22/the-irs-misses-its-deadline-for-completing-a-plan-to-spend-80-billion-in-new-money/?sh=7691e7031c2f --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Wednesday February 22, 2023 - The Supreme Court is currently hearing an IRS case that could have a major impact on all Americans. The IRS wants to be able to access bank and other business records without notifying anyone. As it stands, the IRS has wide-reaching authority to obtain these records by simply issuing a subpoena in secret. This case will decide if these actions violate the Fourth Amendment rights of third parties, such as customers and clients. The Chamber of Commerce wrote in a brief that businesses must choose between two options in response to an IRS summons: “challenging the summons by filing a petition with the Tax Court or complying with the subpoena and disclosing confidential information to the IRS.” This creates a catch-22 situation, as businesses cannot challenge the summons without first complying with it, and could be penalized for not doing so in the interim. This District Court decision in this case, Polselli v. United States Polselli v. United States, No. 19-10956, 2020 U.S. Dist. LEXIS 260543, at *1 (E.D. Mich. Nov. 16, 2020), and the 6th Circuit Appellate decision affirming the case, dangerously limits the privacy rights of individuals, weakens businesses' ability to protect their customers' information, and creates an environment in which businesses are forced to comply with IRS requests or face consequences. Attorney Steven A. Leahy reviews this case and the implications should the United Supreme Court uphold it on Today's Tax Talk. https://www.forbes.com/sites/nicksibilla/2023/02/20/supreme-court-to-decide-if-irs-can-secretly-access-bank-records/?sh=5d31a288486c https://scholar.google.com/scholar_case?case=1450107970258318149&q=Polselli+v.+United+States+irs&hl=en&as_sdt=400006&as_vis=1 --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Crypto-Tuesday February 21, 2023 - Crypto mining facilities are becoming increasingly important in the AI world, as they offer the perfect opportunity to host AI processing while remaining within the blockchain space. Through various projects AI-related activities can be done within a decentralized environment. Furthermore, with the emergence of new ledgerless protocol, blockchain solutions are being developed specifically for AI applications. Miners are starting to redirect their resources to power these AI networks and their applications. This could prove to be a win-win situation for both miners and developers of AI-based applications, as miners would benefit from an additional source of revenue while developers would have access to powerful distributed computing resources at low costs. Ultimately, this could lead to the further decentralization of the global economy by enabling more people across the world to participate in the development of AI-based applications. Consequently, this could provide a much broader range of services and products for consumers, creating an even more accessible global market. The hardware underlying AI will be a critical aspect of decentralizing the global economy. Repurposing of a portion of crypto mining hardware to running AI processing could have a revolutionary impact on the development of AI-based solutions beyond finance. Crypto mining rigs are based in diverse legal jurisdictions and owned by a variety of different parties. A globally distributed AI network spread across crypto mining rigs would be dramatically more difficult for governments or other parties to centrally control than an AI network centered in Big Tech-owned data centers. This would make it easier for nascent AI projects to get off the ground and open up new possibilities for both businesses and individuals when it comes to developing, managing, and participating in AI solutions. In this way, these crypto-mined AI networks could become a major driver of decentralization within the global economy. Attorney Steven A. Leahy discusses these new AI possibilities on Today's Tax Talk. https://coinflip.tech/markets https://cointelegraph.com/news/cryptocurrency-miners-may-lead-the-next-stage-of-ai --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Monday February 20, 2023 – This space has been pointing out that the Internal Revenue Service (IRS) is planning to devote its increased budget to machine learning and data analytics, rather than hiring thousands of new revenue agents. This shift towards the use of artificial intelligence (AI) in making IRS decisions less transparent, as AI algorithms can be difficult or impossible to understand and their decisions are often cloaked in bureaucratic secrecy. To protect American taxpayers Congress must insist on IRS algorithmic accountability. This includes publicizing pre-existing data sets used to train the algorithm, making available a detailed explanation of the algorithm's rules and how it makes decisions, and providing a mechanism for taxpayers to challenge algorithms that appear to be arbitrary or unfair. Further, any AI decision made by the IRS should include some form of human review and oversight. The use of artificial intelligence in government is unavoidable. However, it is essential that taxpayer rights remain paramount and that any AI decision has sufficient safeguards to protect them from being harmed by rogue algorithms. By increasing transparency and oversight of the IRS's use of AI, Congress can ensure that taxpayers are not unfairly targeted or harmed by misguided algorithms. Attorney Steven A. Leahy looks at AI algorithms and IRS decision-making on Today's Tax Talk. https://thehill.com/opinion/finance/3864905-rise-of-the-tax-machines-irs-algorithms-are-coming-for-you/ https://www.forbes.com/sites/nicksibilla/2023/02/20/supreme-court-to-decide-if-irs-can-secretly-access-bank-records/?sh=5d31a288486c --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Thursday February 16, 3033 - National Review's Travis Nix asks the question "Who is in charge of tax legislation, the IRS and the Department of the Treasury or Congress. The question is raised because of a recent Tax Court decision of 3M Company vs Commissioner of the IRS. In the 3M case, the IRS claimed 3M should pay 6% tax royalties on net sales from its Brazilian subsidiary, even though Brazilian Law caps payment at 1%. Thereby double taxing the 5% difference. The decision allows the IRS to ignore foreign laws which limit inter-company transactions and disregards the keystone of U.S. transfer-pricing regulations that allocate income as if both companies were negotiating with a non-related company, resulting in tax avoidance and evasion. The decision may have severe economic consequences, such as lost market access for U.S. companies and less economic growth in both countries. Should Congress enact legislation overturning this regulation by mandating the IRS to respect foreign law in transfer-pricing cases? Attorney Steven A. Leahy reviews this important Tax Court case on Today's Tax Talk. https://www.nationalreview.com/2023/02/congress-should-stop-the-irs-from-taxing-phantom-income/ https://aboutbtax.com/6Hi --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Wednesday February 15, 2023 - The confirmation hearing for the nomination of Daniel Werfel as Commissioner of the Internal Revenue Service (IRS) is underway, with a variety of topics to be discussed. The Senate Finance Committee will question Mr. Werfel on matters such as the $80 billion increase in IRS budget for enforcement and collection activities, recent leaks of taxpayer information, and audit rates that will not increase for households earning less than $400,000. This hearing could determine whether or not he is confirmed as Commissioner of the IRS by President Biden's administration. He will be confirmed. Mr. Werfel is exactly the Washington insider who gets these jobs. Remember, Mr. Werfel was an acting commissioner for a time May 22, 2013 to December 23, 2013. With so much at stake during this hearing, it remains to be seen what answers has Mr. Werfel prepared and how it will influence the outcome of his nomination process. It is only a matter of time before the Senate confirms Mr. Werfel as IRS Commissioner. Attorney Steven A. Leahy reviews the confirmation hearing on Today's Tax Talk. https://www.nytimes.com/2023/02/15/business/irs-daniel-werfel-hearing.html https://www.cnn.com/2023/02/15/politics/daniel-werfel-irs-commissioner-confirmation-hearing/index.html See the testimony at C-Span: https://www.c-span.org/video/?525971-1/irs-commissioner-nominee-daniel-werfel-testifies-confirmation-hearing --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Crypto-Tuesday February 14, 2023 – The crypto world has been rocked by several major regulatory actions. New York regulators shut down new issuance of the world's third-largest stablecoin, BUSD, while the SEC fined the parent of another big crypto exchange and forced it to stop offering a popular type of crypto-yield product to U.S. investors. Banking regulators are also quietly pushing for more oversight into crypto exchanges and other digital currency businesses. These moves could have a profound impact on the future of cryptocurrency. For those already involved in cryptocurrency, it means greater scrutiny from government agencies and more stringent regulations that must be followed. Being aware of these changes can help you identify potential areas of growth in the industry that might have otherwise gone unnoticed. For example, if one crypto exchange is no longer allowed to offer certain products or services due to regulatory pressure, another company may be able to step in and fill that void—allowing some to capitalize on an untapped market opportunity. The recent flurry of regulatory activity shows that cryptocurrency regulation is here to stay. That's why it's essential for business owners to stay up-to-date on these developments in this space so they can make informed decisions when it comes to their own operations and investments in cryptocurrencies. Attorney Steven A. Leahy summarizes the latest Cryptocurrency news on Today's Tax Talk. https://www.cnbc.com/2023/02/14/cryptocurrency-markets-on-edge-as-us-regulatory-crackdown-intensifies.html https://www.wsj.com/articles/crypto-investors-brace-for-more-crackdowns-from-regulators-c1507134?mod=djemalertNEWS https://coinflip.tech/markets --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Thursday February 9, 2023 - As tax season begins, the IRS has yet to decide an important question: are state payments or refunds received in 2022 taxable? So, The IRS is asking people to hold off filing their Tax Returns. The Internal Revenue Service (IRS) tells us they have been working for months with state tax officials about these special payments and refunds that were made available by some states in 2022. “The IRS is aware of the complexity surrounding these payments and is doing its best to provide additional information that will help taxpayers make an informed decision.” In the meantime – Hurry up and Wait. The Sixteenth Amendment to the Constitution proclaims, “Congress shall have power to lay and collect taxes on incomes, from whatever source derived.” There are, however, some statutory exceptions. Do these state rebate checks fit into the exceptions? The IRS doesn't know yet. The IRS tells taxpayers “the rules surrounding them are complex.” In the meantime “the IRS recommends [taxpayers] wait until additional guidance is available.” “[T}he best course of action is to wait for additional clarification on state payments rather than calling the IRS.” Attorney Steven A. Leahy looks at the IRS February 3, 2023 Statement on Today's Tax Talk. https://www.irs.gov/newsroom/irs-statement-taxability-of-state-payments https://www.nationalreview.com/corner/the-irs-fails-at-the-basics/ https://www.marketplace.org/2023/02/09/were-last-years-state-payments-taxable-taxpayers-in-24-states-wait-while-the-irs-decides/ https://www.fatherly.com/news/wait-to-file-your-tax-return-irs-warns --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Wednesday February 8, 2023 - The Treasury Department and Internal Revenue Service have announced the proposed Service Industry Tip Compliance Agreement (SITCA) program. A program designed to improve compliance with tip reporting regulations. The SITCA program would monitor employers' compliance by using their point-of-sale systems and allowing them to adjust tipping practices from year to year. Participating employers would demonstrate compliance by submitting an annual report after the close of the calendar year and receive protection from liability under applicable tax law. This is part of the Administration's plan to make sure no one making under $400,000.00 per year pays even $1 more in taxes. This rule focusing on waitresses will make sure the rich pay their fair share. Attorney Steven A. Leahy reviews the State of The Union and the IRS focus on TIPS on Today's Tax Talk. https://www.foxnews.com/politics/bidens-irs-plans-crack-down-waiters-tips https://www.irs.gov/newsroom/irs-introduces-new-service-industry-tip-reporting-program https://www.denver7.com/news/national/irs-considering-changing-how-tipped-employees-report-tips --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Crypto-Tuesday February 7, 2023 - Tokenizing assets like stocks, bonds and real estate has been an idea bandied about within the financial services industry for years. Blockchain-based platforms such as Ethereum are now leading the way to do just that. Tokenized blockchains are used to expedite financial transactions and create new opportunities for smart contracts, asset tokenization and decentralized financing. It's now up to big banks and financial institutions to show consumers that tokenization is secure, cost-efficient, and compliant with existing regulations. With their deep pockets and government-mandated external oversight, they're the ones best positioned to do it. As Ronald Reagan said, “Trust, but verify.” It's time for big banks to put their money where their mouth is—literally—and prove that tokenization is the way of the future. Through this process, they have an opportunity to gain back the trust of consumers and investors who are skeptical about digital assets in general. With tokenization, America's biggest banks can lead a revolution that not only changes how we transact with each other, but also rebuilds confidence in our financial system—one block at a time. When done correctly, it can open up new opportunities for all of us. Attorney Steven A. Leahy examines tokenizing assets and blockchain technology on Today's Tax Talk. https://www.forbes.com/sites/ninabambysheva/2023/02/07/how-mastercard-goldman-sachs-and-other-tradfi-titans-are-using-blockchain-to-rewire-global-finance/?sh=621332f8339f https://decrypt.co/120639/institutional-trader-survey-jp-morgan-crypto-artificial-intelligence --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Monday February 6, 2023 - The IRS collects taxes from every paycheck issued. This is called withholding and it's how most Americans pay their taxes. America is a “Pay as you go” system. The idea is for employers to withhold an estimated amount of money from each paycheck that reflects what you owe in taxes; when you file your return, the difference between what was withheld and what you actually owe is either refunded to you or requested from you. The problem is that the amount withheld is based on your income estimates for the year, and with wages increasing, many people are facing a surprise—instead of getting a refund, they owe money come April 18. The good news is that you can adjust your withholding so it more closely matches what you owe when tax time rolls around. Talk to your payroll department or consult with a tax professional to figure out how to make sure you're not giving away money in the form of a refund that you would have been better off using in your regular budget. That way, when Tax Day comes around, you'll be prepared. Pay attention to the amount withheld from each paycheck and make the necessary adjustments throughout the year to ensure that come tax time, you won't be in for a shock. When it comes to taxes, knowledge is power. Take the time to understand your individual tax situation and make sure you're withholding the right amount from each paycheck—so you can keep more of what's rightfully yours. After all, there's no better way to celebrate Tax Day than with a little extra money in your pocket. Happy filing https://www.thestreet.com/dictionary/w/withholding https://www.mississippivalleypublishing.com/the_hawk_eye/the-irs-tightens-the-screws-on-the-gig-econimy/article_8d822b3a-a3d9-11ed-836a-9368abad0b67.html https://www.fightbacknow.com --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Thursday February 2, 2023 - As Ronald Reagan once said: “Freedom is never more than one generation away from extinction.” Americans, rely on the government to keep us safe and secure, but we also expect our Constitutional rights to remain intact. The Internal Revenue Service's (IRS) ability to gather taxpayer financial records without a warrant is unconstitutional and a blatant violation of our Fourth Amendment rights and an affront to the freedoms we hold dear. Our Constitution recognizes our privacy for good reason—to protect us from government interference in our personal lives. Yet, when it comes to tax investigations, courts essentially give carte blanche authority to the IRS allowing them to seize and search through private financial information without regard for constitutional limits. Digitization has only made this problem worse; with the IRS able to access digital records with relative ease, it has become increasingly difficult for taxpayers to protect their own financial information from unwarranted invasion. Yet Congress continues to pass legislation that grants the IRS even greater powers when it comes to collecting taxes, including bills requiring reporting on payments as low as $600 and providing chauffeurs for the IRS commissioner. To deny Americans their right to privacy undermines centuries-long victories safeguarding liberty and diminishes our national character altogether; something every American should be fighting against before it's too late! Attorney Steven A. Leahy examines the IRS invasion of taxpayer privacy on Today's Talk Talk. https://www.nationalreview.com/2023/01/an-irs-that-is-above-the-law-threatens-taxpayers-security/ https://www.nationalreview.com/2023/01/will-the-irs-lose-its-80-billion-appropriation/?utm_source=recirc-desktop&utm_medium=article&utm_campaign=river&utm_content=next-article&utm_term=first https://www.jpost.com/business-and-innovation/banking-and-finance/article-730308 https://www.fightbacknow.com/ --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Wednesday February 1, 2023 - As artificial intelligence (AI) continues to improve, the federal government is making great strides towards keeping up with the ever-increasing speed of change. This includes the Internal Revenue Service (IRS). The IRS is undergoing a computing revolution in which artificial intelligence and other software advancements will be implemented. These advances will drastically change how the IRS operates, allowing them to monitor income transactions more closely than ever before, bringing with it an increased chance of audits or penalties if you fail to follow their regulations. Business owners need to stay ahead of these changes, familiarizing themselves with current regulations and preparing for any future updates that may come their way. Even if you follow all the rules now, it's possible that you could get caught off guard by new technology-driven policies that you were unaware of before. It pays to be prepared! How to Protect Yourself The best way to protect yourself from being audited or penalized by the IRS is education and due diligence. Familiarize yourself with all aspects of tax law so that when changes occur (and they will!) you know exactly what's expected of you as a business owner. Make sure that your records are accurate and up-to-date; double check your math and keep records organized so they can easily be accessed if needed. Additionally, consider investing in an audit protection plan or consulting with Opem Tax Advocates, Inc.—this could save time, money, and headaches down the line! It's no surprise that technology has drastically changed our lives over the past decade; everything from communication to travel has been transformed by advances in computing power and artificial intelligence capabilities. Now, these same technologies are also transforming how governments operate—including how we manage taxes here in America. As a business owner, understanding how this revolution affects your bottom line is essential for staying on top of your taxes—and avoiding any unpleasant run-ins with Uncle Sam! With knowledge comes power; educate yourself on current tax laws so that when changes come around (and they will!) you're ready for whatever new regulations may exist. With preparation comes peace of mind! If you are already fighting a tax problem, consider attending a FREE Tax Workshop hosted by Attorney Steven A. Leahy of Opem Tax Advocates, Inc. Go right now to FightBackNow.com to secure your seat at the FREE Tax Workshop. Seats are limited and fill up fast. There's no time to waste FightBackNow.com https://thehill.com/opinion/finance/3832574-coming-soon-irs-on-big-tech-steroids/ https://www.fightbacknow.com/ https://law.stanford.edu/press/irs-disproportionately-audits-black-taxpayers/ --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Crypto-Tuesday January 31, 2023 - If you're like most crypto enthusiasts, you're probably not too thrilled about the recent losses in the market. But did you know that there may be a silver lining? In some cases, your crypto losses can actually lead to tax gains! Here's how it works... When you sell cryptocurrency, the proceeds are considered a capital asset and could be subject to either short-term or long-term capital gains taxes. Short-term capital gains are taxed as ordinary income, meaning that they're subject to your marginal tax rate. Long-term capital gains, on the other hand, receive preferential tax treatment and are taxed at a lower rate than ordinary income. Fortunately, when it comes to crypto losses, the Internal Revenue Service (IRS) gives you the ability to deduct them from your other gains in the same tax year. This means that if you have a net loss of cryptocurrency during the year, you can use it to offset any other gains you may have made, reducing the amount of taxes you owe. The good news is that these losses can also be carried forward to future tax years. This means that if your losses exceed your other gains during a given year, you can still deduct them from your taxable income in future years. Ultimately, it pays to know the tax implications of your cryptocurrency losses and how they can be used to offset other gains. By doing so, you could be saving yourself some coin when Tax Day rolls around! Attorney Steven A. Leahy reveals the Crypto-Tax secrets on Today's Tax Talk! https://www.cnbc.com/2023/01/30/how-to-handle-cryptocurrency-losses-on-your-2022-tax-return.html https://www.wpsdlocal6.com/news/concern-grows-for-cryptocurrency-industry-in-new-year/article_99be2f2e-a173-11ed-905d-933bae3bc6bf.html --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Monday January 30, 2023 - The IRS recently announced a delay for implementation of $600 reporting threshold for third-party payment platforms' Forms 1099-K. Tax year 2022 will be a "Transition" year. As one tax expert put it, "the new changes constituted one of the largest 'cash grabs' by the IRS in recent memory and were likely to hit taxpayers 'like a truck.' On March 11, 2021, President Joe Biden signed into law the American Rescue Plan Act of 2021. Let's take a look at how this new law could potentially impact taxpayers. One area the reporting requirements will hit hard is fantasy sports players. They must report any payments they make over $600 to both the IRS and those receiving payment. Previously, TPSOs had to report payments only if they were over $20,000 or more in value. A TPSO is defined as any business entity or person who processes credit card payments and/or engages in other activities related to money transfers and various other financial transactions. Therefore, anyone engaging in fantasy sports leagues where cash payouts are made and processed via a third-party would be subject to these reporting requirements. These players will face increased chances of an audit or taxation. While the IRS has promised not to go after average taxpayers, this new law could target them, nonetheless. Changes brought about by the American Rescue Plan Act of 2021 have direct implications on ALL taxpayers. The lower reporting threshold means increased 1099s being filed with the IRS and higher chances of audit or taxation. Attorney Steven A. Leahy will evaluate the impact of the American Rescue Plan Act of 2021's tax plan on the average American taxpayer on Today's Tax Talk. https://www.foxnews.com/media/irs-cash-grab-fantasy-sports-hit-americans-like-truck-tax-experts --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Thursday January 26, 2023 - The United Supreme Court declined certiorari on the case Toth vs. United States. Certiorari is the process by which an appellate court has the discretion to review decisions made by trial courts. Becase the Supreme Court refused to hear this case the appellate court's decision stands. And that decision stinks! I think a clear violation of the Eighth Amendment to the Constituion. The Eight Amendment simply says "Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted." Justice Gorsuch dissented from the denial of certiorari. Monica Toth, an American citizen who failed to report a foreign bank account as required by law. The Internal Revenue Service assessed a civil penalty against Ms. Toth for her failure to report, which she argued violated her rights under the Excessive Fines Clause of the Eighth Amendment. Justice Gorsuch noted that protection against excessive punitive economic sanctions is “fundamental” and “deeply rooted in this Nation's history and tradition". He further argued that it would be wrong for governments to evade constitutional scrutiny by labeling fines as "civil" rather than "criminal". In addition, he pointed out other reasons why taking up this case was worth consideration such as incentivizing governments to impose exorbitant civil penalties and clashing with original understanding of Eighth Amendment. Some Judges write for other Judges to help them understand the legal basis for a certain ruling, or even provide their own interpretation of an existing law. This can help inform future decisions on similar cases, since the opinion can serve as precedent. Some judges write with lawyers in mind, crafting legal opinions that are complex and highly technical, so that attorneys can use them as powerful tools when advocating for their clients. Some judges write for the public, with the intention of making legal opinions easier to understand and more accessible to a wider audience. Justice Gorsuch writes for the public. Attorney Steven A. Leahy reviews Justice Gorsuch's opinion on Today's Tax Talk. https://reason.com/2022/08/30/this-grandmother-didnt-submit-the-proper-banking-form-now-the-irs-wants-2-1-million-from-her/ https://reason.com/2023/01/23/supreme-court-declines-case-challenging-excessive-irs-penalties/ https://www.reuters.com/legal/government/us-supreme-courts-gorsuch-dissent-calls-217-mln-tax-penalty-excessive-2023-01-23/ https://news.bloomberglaw.com/us-law-week/supreme-court-punt-in-tax-fine-case-leaves-uncertainty-in-wake --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Wednesday January 25, 2023 - American taxpayers may have reason to rejoice as Republican lawmakers introduced the Stop the Nosy Obsession with Online Payments (SNOOP) Act on Tuesday. The bill, if passed, would put an end to the Biden Administration's new requirement passed in the American Rescue Plan of 2021, for Americans to report online transactions over $600. As reported here, The IRS recently announced a "delay for implementation of $600 reporting threshold for third-party payment platforms' Forms 1099-K." California Rep. Michelle Steel and Tennessee Sen. Bill Hagerty are leading this effort in their respective chambers of Congress, looking to nix this intrusive policy forever, which is a weaponization of government against hardworking citizens. Americans have long been wary of the government's ability to intrude on their personal lives and financial information. But this new policy would have required all third-party platforms to report all online transactions over $600 the Internal Revenue Service (IRS). This policy would leave no room for privacy between a citizen and the government. The SNOOP Act would revert back to the old rules, where third parties reported amounts of $20,000.00 or more AND 200 transactions. Attorney Steven A. Leahy reports on these developments on Today's Tax Talk. https://www.foxnews.com/politics/snoop-scoop-new-gop-bill-would-put-stop-irss-600-online-reporting-requirement https://www.yahoo.com/entertainment/irs-aims-cut-back-1099-211701325.html https://www.msn.com/en-us/news/politics/bill-to-abolish-the-irs-likely-dead-in-the-house-gop-lawmaker-predicts/ar-AA16JnrZ https://chicago.suntimes.com/columnists/2023/1/25/23571245/irs-policy-penalties-senior-citizen-monica-toth-supreme-court-jacob-sullum-column --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Crypto-Tuesday January 24, 2023 - Money serves three purposes: medium of exchange, preserving labor value over time and measuring goods and services across an economy. The promise of Crypto was to provide all three purposes. However, Cryptocurrency still needs acceptance from people in order to work as a medium of exchange like traditional currencies do. That's why the El Salvador move looked so encouraging. Using Crypto as a medium of exchange, rather than a store of value. That experiment hasn't worked…yet. Governments around the world have ratcheted up regulatory controls on Cryptocurrency. Our own Department of Justice proposed three regulatory and legislative priorities for combating cryptocurrency crime, including amending the anti-tip-off law for financial institutions to include digital assets, strengthening penalties and broadening the application of criminal laws governing operation of an unlicensed money transmitting business, and increasing limitations period to 10 years for all crimes that involve transfer of digital assets. The White House also committed additional priorities such as aggressive investigations by SEC Chair Gary Gensler, as the SEC battles with the Commodities Futures Trading Commission to be the regulatory king in the Crypto space. Attorney Steven A. Leahy looks at the past, present and future of money on Today's Tax Talk. https://www.deseret.com/2023/1/22/23558962/cryptocurrency-blockchain-us-dollar https://news.bloomberglaw.com/us-law-week/crypto-actors-face-increased-enforcement-spurred-by-doj-network --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Monday January 23, 2023 - U.S. Treasury Secretary Janet Yellen told Reuters "I'm excited about legislation that's passed and I want to make sure that it makes the difference it should make, and that includes the IRS," she said. "That agency needs to be completely redone, and it's a big task." She also shot down the idea of minting a $1 Trillion Dollar coin to avoid negotiating the debt limit with Congress as a "gimmick." Yellen is looking to find ways to spend the $80 Billion Dollar boondoggle, and Congress is trying to find ways to eliminate it. Let's hope Congress finally does something right. Attorney Steven A. Leahy looks at both sides on Today's Tax Talk. https://www.dailymail.co.uk/news/article-11666579/Treasury-Sec-Yellen-says-IRS-needs-completely-redone-rules-1T-coin-debt-limit.html https://www.yahoo.com/news/janet-yellen-says-not-given-165317435.html https://nypost.com/2023/01/23/u-s-treasury-secretary-janet-yellen-says-irs-needs-to-be-completely-redone/ https://www.reuters.com/world/us/us-treasurys-yellen-says-irs-needs-be-completely-redone-2023-01-22/ --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Thursday January 19, 2023 - The 2023 tax season officially begins on January 23, 2023. This is the date when the Internal Revenue Service (IRS) begins accepting and processing individual tax returns for the 2022 tax year. Taxpayers who file early in the tax season are more likely to receive their refund sooner than those who file later. One important thing to note for the 2023 tax season is the availability of the Free File program. The Free File program is a partnership between the IRS and several tax software companies, which allows taxpayers with an adjusted gross income (AGI) of $73,000 or less to file their federal tax return for free. http://www.tinyurl.com/t3freefile This program is designed to help low- and moderate-income taxpayers prepare and file their taxes electronically, which can make the process faster and more accurate. Taxpayers can use the Free File program to file their federal tax return, schedule their payments, and check the status of their refund. Taxpayers who are eligible for the Free File program can access it through the IRS website (see link below). They will be able to choose from a list of participating tax software companies, which offer various features and options depending on their needs. It is important to note that the Free File program is only available for federal tax returns and does not cover state tax returns. Taxpayers who need to file a state tax return will need to use a separate service or software. Attorney Steven A. Leahy reports on the Tax return 2023 tax season and the IRS Free File program. https://en.as.com/latest_news/irs-tax-season-2023-when-to-expect-your-tax-refund-n/ https://www.irs.gov/newsroom/irs-free-file-launch-aims-to-save-taxpayers-hard-earned-dollars https://www.tinyurl.com/t3freefile --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Monday January 16, 2023 - The Biden Administration is pushing for 87,000 new Internal Revenue Service (IRS) agents in order to increase the amount of audits against families and small businesses. This proposal would cost taxpayers an additional $80 billion on top of their already existing $14 billion annual IRS budget. Thankfully, Republicans in Congress are fighting back with the passage of the “Family and Small Business Taxpayer Protection” Act. This act will rescind all new IRS funding and protect middle-class families and small businesses from IRS audit harassment. Unfortunately, this Act has Zero chance of passing. The Democrats still have control of the Senate, and President Biden would never sign such a bill. In another story, the IRS has set a date of January 23, 2023 for tax season to open. Attorney Steven A. Leahy looks at the effort to curb the power of the IRS. https://thehill.com/opinion/3811279-irs-funding-dont-feed-the-mouth-that-bites-you/ https://www.nytimes.com/2023/01/11/business/irs-tax-returns-backlog.html https://www.denver7.com/news/national/irs-sets-date-for-tax-season-but-taxpayers-can-begin-filing --- Send in a voice message: https://podcasters.spotify.com/pod/show/steven-leahy1/message

Thursday January 12, 2023 - The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS) that helps taxpayers resolve problems with the agency. Each year, by law, the TAS releases a report to Congress highlighting the most serious problems encountered by taxpayers. The report, known as the National Taxpayer Advocate's (NTA) report, identifies systemic issues that impede taxpayers' ability to exercise their rights and recommends solutions to those problems. The 2022 National Taxpayer Advocate report identified ranked the ten most serious problems encountered by taxpayers: 1. Processing Delays 2. Complexity of the Tax Code 3. IRS Hiring & Training 4. Telephone & In-Person Service 5. Online Access for Taxpayers and Tax Professionals. 6. E-File & Free File 7. IRS Transparency 8. Return Preparer Oversight 9. Appeals 10. Overseas Taxpayers The biggest issue identified in the report is Processing Delays. That finding isn't news to any taxpayer. The processing delay has been reported since last year. The recently replaced IRS Commissioner, Charles Rettig told a Congressional hearing last March the backlog would be cleared by the end of 2022. In the just released report the National Taxpayer Advocate, Erin Collins, wrote to Congress, saying ““We have begun to see the light at the end of the tunnel, I am just not sure how much further we have to travel before we see sunlight.” So, the IRS did not clear the backlog by the end of 2022, despite the additional funding to do so. The additional funding BEFORE the additional $80 billon. Attorney Steven A. Leahy looks at the Number one problem according to this report – Processing Delays – on Today's Tax Talk. https://www.taxpayeradvocate.irs.gov/reports/2022-annual-report-to-congress/most-serious-problems/ https://www.washingtonpost.com/business/2023/01/11/irs-backlog-delays-refunds/ https://www.thinkadvisor.com/2023/01/11/taxpayer-service-expected-to-improve-in-2023-irs-says/ https://www.journalofaccountancy.com/news/2022/mar/commissioner-congress-irs-will-clear-backlog-years-end.html --- Send in a voice message: https://anchor.fm/steven-leahy1/message

Wednesday January 11, 2023 - With the new House Majority, Republicans are pledging to use their power to identify agencies at which to slash budgets. Their vote on Monday was the first step in this process, passing a repeal of $71 billion in IRS funding. The Inflation Reduction Act was passed by Democrats in the last Congress - without a single Republican vote. It was designed to provide funding over 10 years to boost enforcement at the IRS after massive hiring surges. It's important that business owners stay informed about any changes related to taxes and filing procedures so they can comply with all requirements quickly and accurately. Keeping up-to-date on any news related to taxes is critical - especially as tax season approaches - so businesses can remain compliant while also taking advantage of any benefits they may be entitled to receive under current laws. Additionally, making sure you have accurate records and staying organized throughout the year can help reduce any potential issues down the line if you do get audited or need help with a specific issue related to your taxes or filing status. Attorney Steven A. Leahy explores the details of this act and how it will affect you. https://news.yahoo.com/heres-why-the-house-gop-made-defunding-the-irs-its-first-priority-123223299.html https://www.govexec.com/workforce/2023/01/house-republicans-say-clawing-back-irs-funding-just-beginning-agency-spending-reductions/381647/ --- Send in a voice message: https://anchor.fm/steven-leahy1/message

Crypto-Tuesday January 10, 2023 - Account abstraction (AA) is a powerful concept that can help business owners unlock the full potential of Ethereum transactions. AA combines user accounts and smart contracts into just one account type, giving users more flexibility in validating a transaction on the blockchain. Account abstraction (AA) is a proposal that attempts to combine user accounts and smart contracts into just one Ethereum account type by making user accounts function like smart contracts. This means that transactions on the Ethereum blockchain will have more flexibility when it comes to being validated. For instance, instead of having rigid requirements such as a valid ECDSA signature or sufficient balance to cover the cost of computation, users will be able to design their own unique criteria for validating their transactions. One of the biggest benefits of using account abstraction (AA) is that it enables multi-owner accounts, which can be used to facilitate auto payments between multiple parties without any manual intervention. This makes AA perfect for businesses looking to streamline their payment processes. Additionally, since AA allows you to customize your own criteria for validating a transaction, you can ensure that only legitimate transactions are processed on your blockchain network. This helps minimize fraud and other malicious activity on your blockchain network. Another benefit of using account abstraction is that it allows for much faster transaction processing times than traditional Ethereum transactions. Since users are not required to wait for confirmations from miners before processing a transaction, you can dramatically reduce transaction processing times with AA and make sure your customers get their products or services delivered promptly. Account abstraction (AA) offers numerous benefits for business owners looking to transition onto the blockchain platform and take advantage of its features in order to streamline their operations and reduce costs associated with managing payments between multiple parties. With AA, businesses can enjoy enhanced security measures due to customizable criteria for validating transactions as well as faster processing speeds due to reduced waiting times for confirmations from miners. Ultimately, if you want your business operations to run smoothly and efficiently while enjoying maximum security and trustworthiness from customers, then account abstraction may be exactly what you need! Attorney Steven A. Leahy takes an in-depth look at what Account Abstraction is and how it can benefit your business.on Today's Tax Talk. https://www.forbes.com/sites/michaeldelcastillo/2022/12/19/visa-proposal-would-bring-ethereum-users-one-step-closer-to-being-their-own-bank/?sh=7b43948521b5 https://usa.visa.com/solutions/crypto/auto-payments-for-self-custodial-wallets.html --- Send in a voice message: https://anchor.fm/steven-leahy1/message